ProPhase Labs, Inc. (NASDAQ: PRPH)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000868278
P/B 0.42
P/E -0.07
P/S 2.66
Market Cap 2.86 Mn
ROIC (Qtr) -160.33
Div Yield % 0.00
Rev 1y % (Qtr) -37.64
Total Debt (Qtr) 7.68 Mn
Debt/Equity (Qtr) 1.12

About

ProPhase Labs, Inc., often recognized by its stock symbol 'PRPH,' is a forward-thinking and diversified company that operates within the biotech, genomics, and diagnostics industry. The company's operations span across various segments, including ProPhase Diagnostics, Nebula Genomics, PBIO, PMI, and TK Supplements. ProPhase Labs' primary business activities revolve around the development and commercialization of novel drugs, dietary supplements, and compounds, as well as the provision of diagnostic testing services. ProPhase Diagnostics, a subsidiary...

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Analysis

Pros

  • Robust free cash flow of (10.33M) exceeds capital expenditure of (355000) by 29.10x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 53.92M provides 7.02x coverage of total debt 7.68M, indicating robust asset backing and low credit risk.
  • Tangible assets of 53.92M provide exceptional 27.47x coverage of deferred revenue 1.96M, showing strong service capability backing.
  • Long-term investments of 43.66M provide solid 45.24x coverage of long-term debt 965000, indicating strategic financial planning.
  • Tangible assets of 53.92M provide robust 8.02x coverage of other current liabilities 6.72M, indicating strong asset backing.

Cons

  • Operating cash flow of (10.69M) barely covers its investment activities of 880000, with a coverage ratio of -12.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (10.69M) provides insufficient coverage of deferred revenue obligations of 1.96M, which is -5.44x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (10.69M) shows concerning coverage of stock compensation expenses of 2.08M, with a -5.14 ratio indicating potential earnings quality issues.
  • High receivables of 3.28M relative to inventory of 266000 (12.35 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of (10.69M) provides minimal -0.70x coverage of tax expenses of 15.18M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 216.83 Bn 33.00 4.96 35.68 Bn
2 DHR Danaher Corp /De/ 162.47 Bn 46.38 6.69 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 56.88 Bn 55.36 13.65 1.09 Bn
4 A Agilent Technologies, Inc. 39.82 Bn 32.64 5.87 3.41 Bn
5 IQV Iqvia Holdings Inc. 38.85 Bn 30.28 2.44 15.19 Bn
6 NTRA Natera, Inc. 31.32 Bn -101.29 14.80 0.18 Bn
7 MTD Mettler Toledo International Inc/ 28.99 Bn 34.68 7.35 2.21 Bn
8 WAT Waters Corp /De/ 22.92 Bn 35.32 7.38 1.49 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.16 2.69
EV to Cash from Ops. -0.99 18.14
EV to Debt 1.37 52.51
EV to EBIT -0.46 19.22
EV to EBITDA -0.46 4.35
EV to Free Cash Flow [EV/FCF] -1.02 2.84
EV to Market Cap 3.69 1.52
EV to Revenue 9.80 4.79
Price to Book Value [P/B] 0.42 1.34
Price to Earnings [P/E] -0.07 22.02

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -1.96
Dividend Payout Ratio % 0.00 2.83
Dividend per Basic Share 0.00 0.19
FCF Dividend Payout Ratio % 0.00 1.92
Interest Coverage -6.15 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 142.77 -31.50
Cash and Equivalents Growth (1y) % -62.98 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % -38.11 -55.24
EBITDA Growth (1y) % 9.98 -447.96
EBIT Growth (1y) % 35.89 -40.50
EBT Growth (1y) % 30.25 -70.94
EPS Growth (1y) % -12.90 -70.02
FCF Growth (1y) % 33.79 56.33
Gross Profit Growth (1y) % 155.12 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.02 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 0.01 1.21
Current Ratio 0.14 2.64
Debt to Equity Ratio 1.12 -0.80
Interest Cover Ratio -6.15 -126.58
Times Interest Earned -6.15 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % -1,681.30 -129.91
EBIT Margin % -2,118.57 -156.71
EBT Margin % -2,462.95 -162.23
Gross Margin % 191.40 47.70
Net Profit Margin % -3,872.20 -189.30